On January 1, 2018, Waterway Industries sold property to Carla Vista Co. which originally cost Waterway $2720000. There was no established exchange price for this property. Carla Vista gave Waterway a $4050000 zero-interest-bearing note payable in three equal annual installments of $1350000 with the first payment due December 31, 2018. The note has no ready market. The prevailing rate of interest for a note of this type is 11%. The present value of a $4050000 note payable in three equal annual installments of $1350000 at a 11% rate of interest is $3299400. What is the amount of interest income that should be recognized by Waterway in 2018, using the effective-interest method? $362934 O$445500. O$0. O $148500